Avalon Chapter Pre-Budget Submission

CARP has several strong recommendations for the government of Newfoundland and Labrador to address the financial security of this group – They would go some way to providing some immediate relief and protecting them in these challenging times. CARP recommends that our provincial government:

1. Unlock LIFs: permit full unlocking of Life Income Funds – to allow people to apply their savings as they need them and to the extent that such unlocking is phased in, eliminate the costs and bureaucracy involved in allowing people access to their own money under compassionate circumstances. This measure would not cost the government and may in fact generate tax revenues as people spend their savings on their daily needs.

2. Pension Reform: consider pension reform that re-balances the rights and powers of employers and plan members, including contingency funding, protection in bankruptcies and a governance role for plan members.

3. Pension Summit: support the call for a Pension Summit to coordinate national pension reform efforts and ensure that knowledgeable representatives of retirees are included. It is not only time to pay attention to something that will affect all of us but it is also time for those most affected to have a seat at the table.

4. National Securities Regulator and Enforcement Agency: support the establishment of a national securities regulator and investor protection and enforcement agency. For smaller investors, especially retirees who have been buffeted about by this market turmoil, the enforcement of market regulations is much more important than whether there is one national regulator or several provincial ones. There have to be real consequences for those who have played fast and loose with our retirement savings.

5. Universal Pension Plan: implement a universal supplementary pension plan for those without any retirement savings. For some immediate relief for low income seniors, CARP recommends that the government of Newfoundland and Labrador:

6. Property Tax Relief: introduce and promote a mandatory uniform minimum level of property tax relief for low income seniors. Low income seniors should not be driven out of their homes by rapidly escalating property taxes. Also, for the same reason, consider the feasibility of implementing some form of cap on the monthly rental charged to low income seniors who live in a rental accommodation. In recent months, rents for local accommodation have increased significantly. This has caused extreme hardship on those seniors who are on a fixed income that is often below the poverty level.

7. Kinship Care Allowance: introduce an allowance for grandparents caring for their grandchildren that is independent of the welfare system, and determined based on the needs and best interests of the children. Lower-income grandparents should be eligible for financial assistance that is at least equal to that available to foster parents. In the meantime, the government should take the necessary steps to stop the unwarranted disallowance of the small amounts now being provided to grandparents. For people who will be obliged to continue working to weather the economic downturn and for those who value the dignity of work, CARP recommends that the government of Newfoundland an Labrador: